2.2 Key Elements of Each Stage
Learning Objective
2. Describe the key elements in each stage.
Stage 1: Discovery
The first stage is the discovery stage, or the information-gathering stage. Think of this as your warm-up. Often, this is a phase in the process that is overlooked or virtually ignored, yet it is of vital importance. This stage begins with a self-discovery. We need to step back and think about ourselves: What do we want and/or need from this negotiation? What are our goals? What is important to us, and what will we give up? We need to remember that at this stage, we likely have the clearest view of our goals since the negotiation process has not formally begun yet.
Once it does begin, we might get so caught up in the moment that we need to have a clear understanding of our goals that we can focus our attention on. Like our dance analogy, once the music starts, it is easy to get lost in it and lose focus on the end goal. Anytime we are in a negotiation situation, we need to know what we want, what we need, and what we can give up. We also want to take this time to consider the answers to these questions for the other party so we can have an idea of where this process might take us.
We wouldn’t start a workout or a dance without a warm-up, so we can’t forget to warm up for our negotiation!
Stage 2: Alternatives
In the second stage, we explore our BATNA or our “best alternative to a negotiated agreement” (Fisher & Ury, 1981). Why do we need to think about alternatives when we are in a negotiation? The simple answer is to figure out whether this is even worth it. Do we want to go through the negotiation process if we have other options that will make us just as satisfied if not more? Think about dancing, before you decide that you want to learn a particular style of dance you may want to explore all of your options. Are there other styles that may be easier to learn? Are there other dance skills that may be more “useful” or “transferrable”? Are there other dance partners that you would prefer?
When we have more options, we are likely to evaluate the negotiation proposals with a more critical eye and get the best deal possible for ourselves. Having a BATNA makes us really think about how the proposal fairs in relation to our alternatives. Is it better? Is it worse? This comparison will allow us to critically evaluate whether we should take a deal or walk away from it entirely.
Fisher and Ury said, “The reason you negotiate is to produce something better than the results you can obtain without negotiating. What are those results? What is that alternative? What is your BATNA—your Best Alternative To a Negotiated Agreement? That is the standard against which any proposed agreement should be measured” (Fisher & Ury, 1981).
The party with the best BATNA has the best negotiating position, so try to improve your BATNA whenever possible by exploring possible alternatives (Pinkley, 1995).
Stage 3: Navigation
In the third stage, we begin navigating the negotiation by presenting our proposals and listening to the counter-proposals. This is a great time to clarify and justify our positioning and ask questions that will help you to better understand the other party’s positioning.
This doesn’t need to be—and should not be—confrontational, though in some negotiations, that’s hard to avoid. But if tempers are high moving into this portion of the negotiation process, then those emotions will start to come to a head here. It’s important for you to manage those emotions so serious bargaining can begin.
Stage 4: Creation
The creation stage is where the real dancing begins. This is the give-and-take element of our negotiation. When we presented our proposals, we likely discovered areas of disagreement or potential conflicts, and now we need to come up with solutions that both parties will agree to. This is the choreography stage of our dance analogy. Both parties have an idea of what they want the final outcome to look like, but we need to now work together to create something that will be satisfying to both parties.
A natural part of this process is making concessions, namely, giving up one thing to get something else in return. Making a concession is not a sign of weakness—parties expect to give up some of their goals. Instead, concessions demonstrate cooperativeness and help move the negotiation toward its conclusion. Making a concession shows forward movement and process, and it allays concerns about rigidity or closed-mindedness.
This is where our discovery stage becomes even more important. We know that we will have to make concessions at some point, so we need to have a clear understanding of what is important to us. What are we willing to give up so that we can gain something else? This is where asking questions and active listening become so vital to effective negotiations. We need to truly understand why the other party wants something or is unwilling to give something up. We need to understand where their constraints stem from rather than just accepting their constraints at face value. The more that we understand the “why” behind their positioning, the better equipped we are to create solutions that will be mutually beneficial.
Stage 5: Execution
The final stage is the execution phase, or when the agreement is implemented. This is the grand finale, where everything comes together, and the negotiation comes to a successful close (most of the time!). You may encounter negotiations where the execution phase is simply the end of the discussion, and one or more of the parties choose to walk away.
“10.5 Negotiations” from Fundamentals of Leadership by Leah Sheppard is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.
“Stages of Negotiation” from Organizational Behavior and Human Relations by Lumen Learning is licensed under a Creative Commons Attribution License, except where otherwise noted.
